German bunds flat on worries over Catalan independence referendum

The German government bunds traded flat Monday despite hovering worries over the Catalan referendum that took place on Sunday. Spain's constitutional court had banned the vote and hundreds of people were injured as police used force to try to block voting. Officers seized ballot papers and boxes at polling stations.

The German 10-year bond yields, which moves inversely to its price, hovered around 0.46 percent, the yield on 30-year note also plunged 3 basis points to 1.25 percent and the yield on short-term 2-year traded 1-1/2 basis points lower at -0.69 percent by 09:20GMT.

Spanish Prime Minister Mariano Rajoy said Catalans had been fooled into taking part in an illegal vote. More than 2.2 million people were reported to have voted, according to Catalan authorities, out of 5.3 million registered voters. A Catalan spokesman said more than 750,000 votes could not be counted because polling stations were closed and urns were confiscated, BBC reported.

Large crowds of independence supporters gathered in the center of the regional capital Barcelona on Sunday evening, waving flags and singing the Catalan anthem. Anti-independence protesters have also held rallies in Barcelona and other Spanish cities.

In another development, more than 40 trade unions and Catalan associations called a region-wide strike on Tuesday due to "the grave violation of rights and freedoms".

Meanwhile, the German DAX traded 0.25 percent higher at 12,861.75 by 09:20 GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -7.22 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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